Correlation Between Aurania Resources and Aurion Resources
Can any of the company-specific risk be diversified away by investing in both Aurania Resources and Aurion Resources at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Aurania Resources and Aurion Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurania Resources and Aurion Resources, you can compare the effects of market volatilities on Aurania Resources and Aurion Resources and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Aurania Resources with a short position of Aurion Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurania Resources and Aurion Resources.
Diversification Opportunities for Aurania Resources and Aurion Resources
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Aurania and Aurion is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aurania Resources and Aurion Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurion Resources and Aurania Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Aurania Resources are associated (or correlated) with Aurion Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurion Resources has no effect on the direction of Aurania Resources i.e., Aurania Resources and Aurion Resources go up and down completely randomly.
Pair Corralation between Aurania Resources and Aurion Resources
Assuming the 90 days horizon Aurania Resources is expected to generate 1.94 times more return on investment than Aurion Resources. However, Aurania Resources is 1.94 times more volatile than Aurion Resources. It trades about 0.04 of its potential returns per unit of risk. Aurion Resources is currently generating about 0.02 per unit of risk. If you would invest 44.00 in Aurania Resources on August 26, 2024 and sell it today you would earn a total of 5.00 from holding Aurania Resources or generate 11.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aurania Resources vs. Aurion Resources
Performance |
| Timeline |
| Aurania Resources |
| Aurion Resources |
Aurania Resources and Aurion Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aurania Resources and Aurion Resources
The main advantage of trading using opposite Aurania Resources and Aurion Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurania Resources position performs unexpectedly, Aurion Resources can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aurion Resources will offset losses from the drop in Aurion Resources' long position.| Aurania Resources vs. Data Communications Management | Aurania Resources vs. Wilmington Capital Management | Aurania Resources vs. Element Fleet Management | Aurania Resources vs. Osisko Metals |
| Aurion Resources vs. Galway Metals | Aurion Resources vs. Minaurum Gold | Aurion Resources vs. BonTerra Resources | Aurion Resources vs. Aurania Resources |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |